TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 170

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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beef retailers solely on the basis of his figures. Equally, however, I would be reluctant to argue that the figures I have just cited are, as they stand, all that conclusive

the other way.

103. So "profiteering" is difficult to define and

frequently, in everyday life, we are forced back on subjective

For instance, I Judgements which can be very unfair.

am sure my honourable Friends Mr. P.C. Woo, Mr. Oswald Cheung and Mr. Szeto Wai would be most upset if I were to describe the outrageous fees they charge for their professional services as containing an element of "profiteering".

(G) Control of "profiteering"

104. What then is "profiteering"?

"Profiteering"

can, in my view, unambiguously occur in situations where either there is a degree of monopoly power, or consumers are unable effectively to exercise their combined influence on prices as a result of some failure in the market information

process.

105.

In the first situation, the Government has a clear obligation to redress the balance, as it were, in favour of the consumer if the Government itself has been instrumental in providing any body of persons with the potential power to manipulate prices or supplies to their own advantage.

106.

An obvious example is our privately owned public utility undertakings and here I can assure my honourable Friends that the Government does exercise a great deal of control either on prices or on profits. A less obvious example, however, is that relating to rice.

Here, as my honourable

Friend, the Director of Commerce and Industry has pointed out, the Government has been mainly concerned to maintain supplies and it has achieved this through an import licensing system. Since the end of 1972, however, import prices have

As a been rising whereas earlier they had been falling. result there has been scope for abuse at the expense of the

It is a matter for regret that some traders in this field should recently have been taking advantage of their privileged position, but I hope honourable Members have been reassured by my honourable Friend's determination to

consumer.

/ensure.

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